Core insurance vocabulary tested on state licensing exams.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is underwriting?
- The process of evaluating risk and deciding whether to issue a policy and at what premium rate
- What is a deductible?
- The amount the insured must pay out-of-pocket before insurance coverage begins
- What is a premium?
- The periodic payment required to maintain insurance coverage
- What is a claim?
- A request by the insured for payment under the terms of an insurance policy
- In insurance, what does 'coverage' mean?
- The scope of risks or losses protected by an insurance policy
- What is a coinsurance clause?
- A provision requiring the insured to maintain coverage at a certain percentage of property value
- What is a rider?
- An attachment to an insurance policy that modifies or adds coverage
- What is a grace period?
- The period after the premium due date during which coverage remains active without payment
- What does 'lapsed' mean for a policy?
- The policy has ended due to non-payment of premiums
- What is a beneficiary?
- The person designated to receive insurance proceeds upon the insured's death or loss
- What is term life insurance?
- Life insurance coverage for a specified period, with no cash value component
- What is whole life insurance?
- Permanent life insurance that provides coverage for the insured's entire lifetime and accumulates cash value
- What is liability insurance?
- Coverage for legal responsibility for bodily injury or property damage caused to others
- What is property insurance?
- Coverage for damage or loss to property owned by the insured
- What does homeowners insurance cover?
- Protection for the dwelling, personal property, liability, and additional living expenses for a residential property